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Bio-based Polyurethane Market - Forecast(2024 - 2030)
Bio-Based Polyurethane Market Overview
Bio-Based Polyurethane market
size is forecast to reach $43 million by 2026, after growing at a CAGR of 7.2% during
2021-2026. Bio-Based Polyurethane are prepared from different vegetable oils,
which can be further used in various applications. In addition it can also be
obtained from cashew nut shell liquid. The major component of CNSL is anacardic
acid (90 %), which is easily decarboxylated to cardanol by distillation. Whereas, with the rise in demand for interior coatings in
automotive, the bio-based polyurethane industry is witnessing an increase in
demand. Growing public interest towards or governments initiatives regarding
electric vehicles will further enhance the overall market demand for bio-based
polyurethane industry during the forecast period.
COVID-19 Impact
The rapid spread of coronavirus
has had a major impact on global markets as, major economies of the world were
completely in lockdown mode. Even after the lockdowns were uplifted around the
world, many companies are still not able to work on their full potential, owing
to the shortage of skilled manpower. This situation has arisen, as many of the people
have migrated from one place to another in search of jobs during the lockdown
times. Hence, this has declined the demand for bio-based polyurethane in the
automotive industry.
Bio-Based Polyurethane Market Report Coverage
The report: “Bio-Based Polyurethane Market – Forecast (2021-2026)”, by IndustryARC,
covers an in-depth analysis of the following segments of the bio-based
polyurethane Market.
By Product – Foams, Elastomers, Coatings, Sealants & Adhesives and Others.
By End Use Industry – Automotive (Passenger Cars, Light Commercial Vehicles
and Heavy Commercial Vehicles), Footwear & Textile, Construction, Packaging,
Furniture & Bedding, Electronics & Appliances and Others.
By Geography – North
America (U.S., Canada, and Mexico), Europe (U.K., Germany, Italy, France,
Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China,
Japan, India, South Korea, ANZ, Indonesia, Taiwan, Malaysia, and Rest of Asia
Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South
America), and RoW (Middle East and Africa).
Key Takeaways
- Asia-Pacific dominates the Bio-based polyurethane market owing to the increasing demand from endues industries such as automotive, construction and others.
- The growing demand for interior coatings in automotive, is likely to aid in the market growth of bio-based polyurethane.
- Increasing usage of bio-based polyurethane as foam sealants for assist in controlling air leakage through buildings, is expected to drive the market growth for bio-based polyurethane market.
- Polyurethane foams are highly flammable thus, this will create hurdles for the Bio-based polyurethane market.
Figure: Asia Pacific Bio-Based Polyurethane Market Revenue, 2020-2026 (US$ Billion)
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Bio-Based Polyurethane Market Segment Analysis – By Type
Foams segment held the largest
share in the bio-based polyurethane market in the year 2020 and is expected to
grow at a CAGR of 6.8% during the forecast period. In building and construction
industry, foam is used owing to its lightweight and durable properties in sealing
and thermal insulation applications. However, its flexibility and non-fibrous
properties make it an ideal thermal and acoustic insulator. However, bio-based
polyurethane (PU) foam is a promising alternative to enhance the foam’s
properties via green technology. Bio-derived natural materials, such
as vegetable oils, polysaccharides and biomass is a rich source of
hydroxyl precursors for the synthesis of polyols which can be potentially used
to make polyurethane foams.
Bio-Based Polyurethane Market Segment Analysis - By Application
Construction sector has been the
primary market for bio-based polyurethane in the year 2020 and is expected to
grow at a CAGR of 7.5% during the forecast period. In construction sector, bio-based polyurethane is used as foams, adhesives and sealants. So, with
growing construction projects around the world, the demand for bio-based
polyurethane will grow in the construction industry. For an instance, in
November 2019, “Apple” had announced that they will contribute USD $2.5 billion
to try and alleviate California’s housing crisis. Similarly, in the same year
(2019), “Google” had also a decided to invest USD $1 billion for easy bay area
housing. Therefore, with the growing usage of foams and adhesives in
construction projects, the bio-based polyurethane market is expected to grow.
Bio-Based Polyurethane Market Segment Analysis - By Geography
APAC dominated the Bio-based polyurethane market in the year 2020 and is expected to grow at a CAGR of 7.1% during the forecast period. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India. The growing construction and automotive sector in this region is expected to drive the demand for bio-based polyurethane. In automotive sector, bio-based polyurethane are used as interior coatings, so the increase in automotive manufacturing will drive the market growth for bio-based polyurethane. According to OICA’s (International Organization of Motor Vehicle Manufacturers) production statistics of 2019, China is the largest producer of automotive around the globe. Whereas India is the 5th largest producer automotive producer. So, with the growing demand and manufacture of automotive in this region, the bio-based polyurethane market is expected to grow in the forecast period.
Bio-Based Polyurethane Drivers
Growing demand for battery electric vehicles
The rise towards electric vehicles in the developed and developing nations has led to a great demand for paints & other coatings in the automotive industry as well as for bio-based polyurethane over the forecast timeframe. According to IEA’s global electric vehicle outlook 2020, as compared to 2018, in 2019 there is an increase in 1.52 million reaching 4.79 battery electric vehicles around the world. This data shows the growing demand for electric vehicles owing to this the bio-based polyurethane market demand could growing.
Growing demand in the packaging industry
Polyurethane
foams are another material which is commonly used in protective packaging applications.
Polyurethane foams are characterized by an open cell construction and have a
softer feel, especially in the lower density and firmness ranges. They are most
often the material of choice for smaller, lighter, and more shock-sensitive
products. Hence, with the growing application in packaging industry, the
demand for bio-based polyurethane is expected to grow in the upcoming years.
Bio-Based Polyurethane Market Challenges
Flammability of rigid PU foam
One of the major
disadvantages of rigid Polyurethane (PU) foams is their low thermal resistance,
high flammability, and high smoke production when burning. PU foams based on
petrochemical and bio-based polyols are ignitable and can be an additional fuel
source in the case of a fire disaster. Hence in case of any accident in
the manufacturing places or workshops, it can create chaos. Hence this can
decline the market growth for bio-based polyurethane.
Bio-Based Polyurethane Market Landscape
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the bio-based polyurethane
market. Major players in the bio-based polyurethane market are Basf Se,
Covestro, Dowdupont, Huntsman, Johnson Control Inc, Lubrizol, Mitsui Chemical,
TosohTse Industry, Woodbridge Foam Corporation, among others.
Acquisitions/Technology Launches
- In October 2020, Adhesive manufacturing company Covestro has acquired the resins and functional materials (RFM) business from Royal DSM. Under the terms of the agreement, Covestro will pay USD $1.9 billion (1.61 billion euros) that will be financed through a combination of equity and debt instruments.
- In August 2020, BASF India Limited has completed 100% acquisition of BASF Performance Polyamides India Private Limited from BASF Nederland B.V. and BASF SE for an aggregate consideration of USD $40.79 million (Rs302.90cr.)
Relevant Reports:
Report Code: CMR 20443
Report Code: CMR 62656